SYNACOR INC.,HAMBURG vs. ACIT, INT.TAX. CIRCLE- 3(1)(2), DELHI

ITA 1802/DEL/2025Status: DisposedITAT Delhi16 October 2025AY 2018-19Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal found that the AO had not independently examined the receipts for the assessment year in question and relied on an order from a subsequent year. The Tribunal also noted the AO's inability to specify the proportion of receipts from software licenses versus support and maintenance services.

What were the facts?

The assessee, a US-based company, received payments from Indian distributors for software licenses. The assessee claimed these receipts as exempt, arguing they were for the use of copyrighted articles, not royalties or Fee for Included Services (FIS) under the India-US DTAA. The Assessing Officer (AO) treated these receipts as FTS/FIS.

What were the issues?

Whether the receipts from the sale of software licenses are taxable as royalty or Fee for Included Services (FIS) under the Income Tax Act and the India-US DTAA, considering the 'make available' condition.

Which sections of the Income-tax Act were involved?

Section 147,Section 144C(13),Section 9(1)(vii),Section 12(4)(a),Section 12(4)(b)

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Income Tax Appellate Tribunal, DELHI BENCH “D”, DELHI

Hearing: 16/10/2025

PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the assessment order dated 15.01.2025, passed u/s. 147 r.w.s 144C(13) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’), for Assessment Year 2018-19. 2. Shri Deepak Chopra, appearing on behalf of the assessee at the outset submitted that though the assessee has raised multiple grounds of appeal, however, t

The order continues below.

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